What is the purpose of a Notice of Intent to Levy and the available taxpayer protections?

• A. It notifies that collection actions may proceed and allows the taxpayer to seek collections alternatives, a hearing, or an appeal.
• B. It immediately forgives the tax debt.
• C. It triggers criminal charges against the taxpayer.
• D. It ends the collection process with no further options.

Answer: (A)

A Notice of Intent to Levy functions as a formal warning that collection actions may proceed, and it also preserves the taxpayer’s rights to respond. It signals that the IRS is moving toward seizing assets or income if the debt isn’t resolved, but it doesn’t end there; the notice provides protections the taxpayer can use. The taxpayer can pursue collection alternatives such as installment agreements, offers in compromise, or other arrangements to satisfy the debt. They can also request a hearing to challenge the levy or seek resolution through Appeals, which may include a Collection Due Process hearing or other review. This notice does not forgive the tax debt, does not trigger criminal charges, and does not end the collection process; instead, it creates a window to negotiate or contest before levy action occurs.